Can i start a non-profit without a board of directors?

Is it possible to start a non-profit with no board of directors?

  • I'm looking to start a non-profit organization in New Orleans, LA, and I want absolute controls over it, which I perceive a board of directors as being able to jeapordize. Could someone also explain why boards of directors are even necessary in the first place? It seems to me like it would be run like a business. Why would you want to jeapordize your power to run your organization exactly as you wish?

  • Answer:

    Each state holds unique regulations for licensing a nonprofit "corporation". They are still a business entity and must meet state requirements. Some states say just 1 person is necessary other states 3, etc. When you hear about nonprofits that are funded under federal grants they are tax-exempt under the IRS as a 501(c)3 organization established as a "charity". In either case, nonprofits are NOT for the benefit of 1 individual or a a select group... that is what for profit businesses are for. So when you speak of "jeapordizing your power"... you certainly are not thinking of a nonprofit structure for your activities. In my state we currently are facing a husband and wife who did just that... and used public grant money to do it. Fraud, misappropriations, conspiracy, and money laundering were commited under their control (the board members they did have were all family members and friends). They are facing some serious time in prison for sure. Just this time last year another clever gent was busted for the same thing. He organized a nonprofit that he had total control over, raised money publicly, and partied like it was "1999". He did time after the FBI, IRS, and his funding agencies figured enought was enough. My advice (and I do this for a living) is start a private business where you can have absolute control - raise you own money, pay taxes, and all other good stuff we Americans can do in a capitalistic society. By the way - good question. A lot of people misunderstand just what nonprofits are really about. I hope this gives some understanding. Good luck, my friend.

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Oh boy. First, yes you can start a 501c3 without a board of directors. Just file it with your local, state, and federal offices and it will qualify without a board. But you will have to have the other qualifications for it to be approved. Second, your board of directors is there to give your non-profit validity, raise money, and give it exposure that you wouldn't be able to get on your own.

Drew P

Yeah, you could get up and coming entrprenuers to sit on your boards for FREE for the experience and they get to practice their skills for work too...

stepup1895

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